Under Armour has experienced steady growth due to a focus on sports apparel innovation, strong company culture, and streamlined leadership. The report recommends strategies for Under Armour to continue expanding globally while maintaining their innovative culture, focus on research and development, and expand into footwear and youth markets. A SWOT analysis found strengths in brand loyalty and quality products, and opportunities in women's/youth apparel and footwear. International expansion and technology were also identified as opportunities.

1. Under Armour, Inc. (UA)
Andrew Buryak
Eden Lichtenberg
Kevin Mclamb
Jamie Rogers

2. EXECUTIVE SUMMARY:
The main intent of this report is to analyze the strategic position of Under Armour, Inc. and
to recommend the most appropriate strategies for growth, given current market conditions.
The company’s steady rise is primarily derived from a focus on innovation of sports apparel,
a healthy company culture, and a streamlined leadership focused on building brand equity.
Our analysis is based upon SWOT, BCG Matrix, Ansoff’s Matrix, and the Clarity Framework.
UA holds a strong leadership position in the performance apparel market and is expanding
into other areas such as shoes and athlete biometric measurement. Coupled with its
reputable brand, we believe that UA can leverage these strengths in pursuit of further
expansion. The strategies include focusing on global expansion while maintaining their
innovative company culture, a continued focus on research and development, and further
expansion into the footwear market and youth apparel market.
HISTORY:
Under Armour, Inc. (UA), incorporated on August 1, 1996 was started by Kevin
Plank from his grandmother's basement in Washington, DC. After extensive
research on the athletic benefits of synthetic fabrics, he designed the first Under
Armour HeatGear T-shirt, which he named the #0037. Engineered with moisture-
wicking performance fibers, the shirt helps keep athletes cool, dry, and light in the
most brutally hot conditions. Plank traveled up and down the East Coast selling his
revolutionary new product out of the trunk of his car. By the end of 1996, Plank
made his first team sale, and Under Armour generated $17,000 in sales. In 1997,
Under Armour introduced the now-famous ColdGear fabric, which keeps athletes
warm, dry, and light in cold conditions, and then the AllSeasonGear line, which
keeps athletes comfortable between the extremes. By the end of 1998, Under
Armour outgrew grandma's basement and moved to an all-new headquarters and
warehouse in Baltimore. UA is engaged in the development, marketing and
distribution of apparel, footwear and accessories for men, women and youth. Its
products are sold worldwide and are worn by athletes at all levels, from youth to
professional, on playing fields worldwide. Most of its products are sold in North
America. Internationally, UA sells its products in certain countries in Europe, a third
party licensee sells its products in Japan, and distributors sell the Company’s
products in other foreign countries, such as Panama and Brazil. In addition, it
opened a store in China during the year ended December 31, 2012. In February
2013, they opened a retail store in Harbor East in downtown Baltimore and in
November 2013, the Company acquired MapMyFitness.
UA’s expansion and growth does not seem to be slowing anytime in the near future.
We decided to look into its possible opportunities through extensive research and
applying different frameworks we learned throughout the semester.
SWOT ANALYSIS:

3. Strengths
Brand loyalty and equity - Under Armour has incredible brand loyalty among its
performance apparel customers and more importantly, fosters brand loyalty among young
athletes, which translates into life-long customers. More importantly, UA frequently gets
free endorsements from athletes who choose to wear their apparel without being paid to do
so, because it works. This brings significant brand recognition to UA. Similar to other
inspiring and strong brands such as Apple, Under Armour sports a styling and functional
appeal, which is easily recognizable among customers. Also, UA’s recent acquisition and
development of MapMyFitness increases brand loyalty and brand recognition. Currently, UA
has about a 70% market share of synthetic performance apparel market and is estimated to
be worth about $3 billion.
High quality, innovative products - Going along with brand loyalty, Under Armour’s
signature moisture-wicking, tight fitted clothing are the hallmark of the UA product lines
that attract most customers and keep them coming back for more. They are currently
expanding and integrating into athletic biometric measurement with their acquisition of the
MapMyFitness app. Also, they have always been known to have a vibrant and innovative
research and development department, comprising a large part of the company’s workforce.
Brand Recognition through Increased Sponsorship (marketing) - Under Armour’s
marketing strategy is highly effective, as the company hosts professional and college sports
games, camps and clinics. They are the title sponsor of UA All-America Lacrosse Classic and
All-America Games (softball and volleyball for high school athletes). They have ad
campaigns with Lindsey Vonn, Lauren Cheney and Monica Hargrove, as well as contracts
with famous athletes, such as Patriots quarterback Tom Brady, Heisman Winner Cam
Newton, Giants Catcher and NFL Rookie of the Year Buster Posey, Milwaukee Buck’s
Brandon Jennings, Raven’s Ray Lewis and multiple Olympic Gold Medalist Michael Phelps.
They are the official footwear supplier for the MLB, the official supplier of gloves to the NFL
and they sponsor the NFL Combine. These deals are in place to promote the Under Armour
logo on millions of TV screens, exposing their brand to tens of millions of youth athletes.
They recently signed a deal to extend their sponsorship of the Summer Olympic Games from
2016 all the way through 2020.
Strong growth
- Recent earnings report reflects profit growth of more than 70%; revenue grew 36%.
- Average revenue growth of about 20% per quarter.
- High profit to earnings ratio.
- Competes effectively with Nike, taking away market share.
Weaknesses
Young Company- Although Under Armour has risen to near the top of the sporting apparel
industry, they are still a young company that has only been around for about 16 years, and
only been really in the public’s attention for about 10 of those years. This is a distinct
disadvantage for companies such as Nike, or Adidas who have been around for many years.
Limited Product Line- Under Armour could be credited with being one of the first to create

4. their moisture wick technology shirts, and those shirts have been the foundation of their
company. They do produce cleats and running shoes, but they are lacking in other
equipment areas. For example Nike makes cleats, shoes, football gloves, baseball gloves,
baseball bats, hockey shafts, lacrosse shafts, etc. Point being Nike has a lot more actual
products rather than just apparel.
Small International Presence- they have a strong dependence on domestic market. Their
competitors (Nike and Adidas) have an exponentially larger share in international markets.
For example, international sales account for about 10% of UA’s revenue whereas
international sales account for approximately 60% of Nike’s revenue.
High prices- they have higher prices compared to their competitors. UA’s brand strength is
huge, which allows them to sell their products and make higher profits however, it deters
many from buying their products.
Low Barrier to Entry- The athletic-wear retail market has low barriers to entry, which
allows for increased competition.
Smaller Company Relative to Main Competitors- Under Armour is smaller compared to its
main competitors, which creates some barriers, such as less financial capital. This may
make it more difficult for them to emerge in international markets or expand their youth or
women’s apparel product lines.
Opportunities
Women’s & youth apparel- Women’s apparel has outpaced overall company growth and is
expected to be about a $1 billion business in 2016. CEO Kevin Plank explains his focus on
women’s apparel expansion will be through product development and placement. He
explains they want more than just the “shrink it and pink it” philosophy and wants to
distribute products more where women commonly shop, for example, department stores.
As far as youth apparel, Under Armour introduced the “Alter Ego” line in which they paired
with Marvel and D.C. Comics and showed that they have a good grasp of this market. A focus
on marketing to youth clients who are future product purchasers and users would also
combat the threat of obesity, which looks to cause a decrease in sales.
Footwear - Under Armour is under-represented in shoe sections of sporting goods stores.
Since its launch, the company has been able to grab 2.7% and 2.1% of the running shoes and
footwear markets respectively. The footwear market is a highly segmented space and Under
Armour can leverage the brand loyalty it has generated from its performance apparel
customers to increase its share in these markets. It aims to grow its revenues in the
footwear division from $290 million currently to approximately $600 million by 2016.
Under Armour also aims to make movement into the basketball shoes segment and has
recruited several NBA stars to endorse its products. UA currently makes its revenues in
their footwear department by selling at 30% lower costs than other departments. In order
to make a dent in the medium to higher price ranges, UA has a big opportunity ahead, which
will require significant brand positioning.
Technology – The biggest opportunity UA has recently taken advantage of is their expansion
into technology, with the acquisition of the MapMyFitness app. Under Armour has a variety
of tech gadgets that couple with the MapMyFitness app, including MapMyFitness Universal

5. Sport armband, a Quad Lock Universal Bike Mount, which holds your phone while you track
your bike route/trip. There is also the MapMyRun all-in-one heart rate monitor with
Bluetooth capabilities and the MapMyRun Spi-belt, appealing for runners who want to hold
on to necessities (i.e. keys, money, etc.) while on their run. UA also has a new performance
fitness technology line, including their Armour39, which tracks heart rate, calories, real-
time intensity, and WILLpower—the first true measure of an athlete that boils your
workout down to a single score 1.0-10.0. And, unlike other heart rate monitors that only
average your heart rate data, Armour39 precisely captures every heartbeat no matter your
workout—from endurance running to interval training.
International expansion – International revenues right now only amount to 6% of Under
Armour’s net revenues. The company plans to grow these revenues by expanding
internationally. In a presentation on Investor Day, the company’s management revealed
that it expects the contribution of international sales to grow to 12% by 2016. There are
exponential opportunities for UA to expand internationally. Recently, their expansion
include:
- Panama City, Panama
- Brazil
- Chile
- The Philippines
- Singapore
- UA is available in Central America via a partnership with an exclusive distributor,
Sport House International, Inc.
- Under Armour and Rugby Canada announced a new multi-year sponsorship as the
official technical partner for the sport's national governing body starting this year
(2014). The brand will manufacture and design training and match day kits for
Rugby Canada national teams effective immediately. Under Armour will outfit the
Men's Under 17, Men's Under 20, Women's Under 20 and all senior teams.
Threats
Relationship issues with foreign suppliers and manufactures - Under Armour is very
dependent on suppliers and manufacturers in foreign countries. This dependence is caused
by their need to reduce costs in the U.S. Because of this reliance, UA must ensure that their
management of relationships with their overseas suppliers and manufacturers is done
properly or it could threaten their supply chain.
Foreign currency translation - Since Under Armour is expanding globally, they are
vulnerable to currency translation fluctuations. They generate revenue in Canada and
Europe and incurred transaction losses of $3 million in fiscal year 2012.
Economic recession - An economic recession reduces the amount of consumer spending and
it also increases manufacturers inventory. People become more conscious on what they
spend and where they spend it and purchasing UA products are a luxury they will do
without.
Substitutes - Substitutes threaten the price structure at Under Armour because it inhibits
their ability to raise prices. If consumers are satisfied with substitutes of the UA brand they
will take advantage of the cost savings. This is also true in a recession, where consumers

6. have less residual income and are searching for cost savings. Adidas, a major competitor,
has created a substitute for the UA performance gear.
Obesity - The increasing rate of obesity in the U.S. is reducing the number of potential
consumers for Under Armour. This is a threat because this demographic commits little to
none of their time to physical activity and, thus, does not require Under Armour gear. The
reduction in a potential customer base reduces sales and profits.
Exporting the Under Armour company culture - The Under Armour company culture is a
distinct competitive advantage and difficult to export globally, should UA pursue more
overseas options. Employees of UA who are part of the current culture consider themselves
part of a team and the environment makes the company so desirable to be a part of. Because
UA has foreign suppliers and manufacturers producing and distributing their global brand
in diverse cultures, not being able to export these values that they have created is a major
threat to their culture and overall vision.
BCG MATRIX:
Under Armour (UA) receives 94% of its revenue from domestic sales, which is the focus of
this framework.
The Men’s Apparel business unit is a cash “cow” with a sizable market share in a market
segment where growth has slowed. The accessories business unit is a potential “star” if UA
is able to leverage current and future products with their newly acquired “MapMyFitness”
app, an open fitness tracking platform.
UA currently has two “stars” that are in high growth markets. The business unit produces
Youth Apparel, which has a moderate market share relative to their rival industry leaders,
Womens Apparel
Performance
Apparel
Footwear
Accessories
Kids
Active Wear
Mens Apparel
MarketGrowth
Relative Market Share
Dog
?Star
Cow

7. Nike and Adidas. UA’s biggest “star”, holding a significant 60% of the market, is their
Performance Apparel wear. This is by far the most successful business unit and it is in a
rapidly growing marketplace.
There are three product question marks: Active Wear, Footwear and Women’s Apparel. All
three product markets are relatively new to UA and continue to demonstrate steady
growth--thus, the potential for future growth in these markets is high. The BCG Framework
supports increased investments and aggressive marketing strategies in markets where
consumers are: 1.) Extremely receptive and 2.) In markets that are also relatively small.
The most lucrative product market, relative to current market share and future market
growth is the Women’s Apparel. UA has already made inroads into the footwear and active
wear markets, and revenues from the “cows” and “stars” are available to fund an aggressive
strategy.
ANSOFF’S PRODUCT-MARKETEXPANSIONGRID:
Products
Markets
Current New
Current
Market Penetration
UA holds about 70% of market
share of PA market in the U.S.,
holding a leadership position.
Shoes have only 2.1% market
share.
Strategy: Maintain leadership
position in PA market and
leverage brand/acquisitions to
increase market share in
shoes/accessories markets. Focus
on women and youth.
Product Development
UA has a vibrant R&D department
that continues to innovate and
stay on top of its game. Existing
products are enhanced by new
business of athlete biometric
measurement.
Strategy: Continue to innovate
and develop athlete biometric
measurement, integrating it with
existing and new products.
Acquisitions of innovative start-
ups.
New
Market Development
UA has very low presence in
international markets.
International revenues account
for only about 6% of UA’s net
revenues.
Strategy: Leverage UA brand and
high quality of products to
carefully expand into
international and emerging
markets. Focus on women and
youth.
Diversification
Difficult to penetrate new markets
with new products. Potential
consumers can be unfamiliar with
UA and its quality standards.
Strategy: Push current, well
established products into new
markets and leverage this
expansion to promote new
products.

8. Strategic Priority
1 – High
2 – Moderate
3 – Low
Products
Markets
Current New
Current
Market Penetration
1
Product Development
1
New
Market Development
1
Diversification
2
CLARITYFRAMEWORK:
Performance is word that commonly presents itself in the sports industry--athletes train to
perform, whether it is practice or game day. Performance is also a word that presents itself
in any organizational setting--every business strives to achieve organizational performance.
Much of Under Armour’s success is owed to their resilient attitude, and their mission: To
make all athletes better through passion, design, and the relentless pursuit of innovation.
President and CEO Kevin Plank, credits their reputation for excellence as a driver for their
sustained environmental growth explaining, “Our attitude gives us an entrepreneurial edge
that makes us hungry, passionate, driven, and committed to the challenge at hand.” Back in
2012 Fortune magazine ranked U.A. among their top 100 Fastest-Growing Companies; for a
company that was (then) only 16-years young--that's quite the feat. Today UA operates in
98 countries, employs more than 5,900 employees, and is the official footwear supplier of
the NFL and MLB.
In an increasingly digital, competitive, and fast-paced economy, it makes sense for a
company such as UA to expand globally; but within any foreign venture, shifting external
environments tend to place pressure on existing business strategies, which then must be
modified or changed to achieve intended outcomes. Domestically, UA has done an
incredible job of yielding strong organizational performance, but it’s not as easy to succeed
in an unfamiliar environment. UA has a strong following; they have many loyal customers,
stakeholders, and partners--and a lot of that falls back on their culture. From an
international strategic standpoint, our group felt that culture was one of the most critical
areas worth emphasizing.
In order to execute this initiative, our group evaluated and analyzed a few key areas within
The Clarity Framework model, which, when viewed as a whole system, aligns leadership
vision, strategic goals, and intended outcomes:
 Process Integrity- defining how the work gets done: identifying which processes
work well and measuring how well these processes support UA’s strategy and

9. goals. Being an efficiency-seeking firm, it’s important to consider the extent of
institutional distance between UA’s personal culture, versus the culture they’re
operating in. Above all, there must be perceived value in the delivery of UA’s
products and services to their customers.
UA currently conducts business with suppliers and subcontractors that comply
with their core values, follow established work place practices, and comply with
their Code of Conduct. Thus far, their processes fit their strategy.
 People Readiness- Being that UA’s culture is built upon innovation, design
activities are an important area of focus: identifying the intended results and the
methods to produce them. In the past UA has had a few product failures, most
recently the Olympic speed skating suits. Had UA facilitated and encouraged
collaboration between their partnering engineers and their own team, solutions
could have been identified and developed more quickly to better serve their
customers’ needs. The key is communication, which must be frequent, direct, and
aligned, laying out a clear understanding of what people need to do especially
when partnering with other companies.
 Organizational Context and Vanguard Leadership- A performance-focused work
environment is something UA has always done really well in the past, but going
forward internationally, it is important for UA to be cognizant of future obstacles
that may require restructuring, especially changing working relationships and
business processes. Aligning leadership and facilitating a supportive
organizational environment are imperative to UA’s culture.
 Intent- Too often leaders focus on the change itself as opposed to emphasizing the
objectives of the strategy. If UA’s intent isn’t monitored and if standards aren't in
place to address execution, all is lost. Kevin Plank and his executive team (supply
chain officer, international affairs president, global marketing president, and
president of sales) have to document a clear understanding of their global
initiative and its intended outcomes, and be on the same page, and continually
support it moving forward.
CONCLUSION:
Together, all of these frameworks present the strengths and weaknesses of Under Armour
in a different light. Furthermore, the frameworks highlight the overall liability or asset of
foreignness, and more so, the decision of whether to expand globally or remain regionally
diversified. Under some circumstances, being in foreign markets can be an asset, or a
competitive advantage. To say that UA is viewed as a “cool” and trendy label among U.S.
customers is a fair statement, but who’s to say if customers abroad interpret UA just the
same. This perception, sometimes referred to as country-of-origin effect, changes
depending on a culture and it’s geographic location and will always be different from place
to place. Overall, the decision to expand, particularly overseas, boils down to post entry
strategies. Managing competitive dynamics, making alliances and acquisitions work
cohesively, and creating a supportive, productive work environments will really affect the
whole scheme of things.
Future Expectations
The sports apparel industry is expected to experience continuous growth, and UA is
positioned to expand and increase its market share across all product lines. The women’s

10. apparel industry in particular, is expected to experience accelerated growth; 27% in the
next three years according to the Boston-based research firm Trefis. Given UA’s innovative
research and development, and their strong organizational leadership roles, they should
continue investing in operations that have always worked well for them-- particularly
performance apparel.
The sports apparel industry itself will remain highly competitive with industry leaders such
as NIKE, Adidas, Columbia, and UA at the forefront. Since these industry giants have such a
large market share and such strong brand awareness, it will be difficult for new entrants to
break into the industry. UA’s distinct competitive advantage coupled with their vanguard
leadership and culture will make it difficult for existing competitors and new entrants to
imitate.
While NIKE is expected to continue as the leader in the athletic footwear industry, UA is
expected to invest more in their footwear product lines, which show favorable investment
opportunities. The expected growth in all areas of the UA brand should increase revenue
across the board creating more opportunity to invest in innovative product development.
UA’s global market share is expected to increase through licensing agreements, strategic
alliances and acquisitions. The result of this expansion is expected to increase its current
imbalance in revenue creation, which is 94% from domestic sales and 6% globally.
RecommendedStrategy
The recommendation is for Under Armour to expand globally and increase their marketing
efforts in the lucrative women’s apparel market. Under Armour is the industry leader in
performance apparel and development of innovative fabrics for this purpose. They have a
dominant market share in the United States but have not transitioned this success globally.
UA must ensure that the strength of their domestic success, their culture and brand
recognition is exported along with their innovative products internationally. This task
should be accomplished by creating strategic alliances with local distributors.
As UA expands globally they must also increase their market penetration into the women’s
apparel industry. They currently have a very small market share in an industry projected
for accelerated growth over the next three years. While UA has increased its efforts to
penetrate this industry it has not been aggressive enough to keep pace with the
marketplace growth. This more aggressive marketing strategy should include sponsorships
of women’s sports and endorsements with popular female sports figures to increase brand
awareness in this demographic. The BCG framework for UA clearly supports that it is time
to increase investment in this industry.
UA should continue to invest heavily into R&D, the main engine of its growth and long-term
success. The company should focus on the latest innovations and technologies in the
industry, thereby maintaining its leadership position in the performance apparel market.
Innovations and diversification, such as its new business of athlete biometric measurement,
should be positioned to complement existing products and add to sales growth. Any
acquisitions should be related to its product lines so as to create synergies that would drive
sales and growth. If old and new product lines complement each other through technologies
such as MapMyFitness, this would add to brand equity. Brand recognition and loyalty would

11. be a key factor in expanding to new markets and introducing new products. As such, brand
loyalty should be maintained rigorously by upholding high standards of quality and
constant innovation.
Under Armour is severely under-represented in shoe sections of sporting goods stores. The
footwear market is a highly segmented space and UA can leverage the brand loyalty it has
generated from its performance apparel customers to increase its share in these markets.
UA recently spent 11 years developing their newest footwear release, Speed Form Apollo at
the beginning of 2014 but currently makes its revenues in their footwear department by
selling at 30% lower costs than other departments. In order to make a dent in the medium
to higher price ranges it will require significant brand positioning, which will be able to be
achieved through its already loyal customer-base, as well as the customers it hopes to win
over with its innovative new running shoe. Continued research and development of other
footwear varieties will also be key in attaining the increased market share they hope for.
UA should market its products more heavily towards the youth segment in order to foster
long-term brand loyalty. Many youth customers are likely to develop brand loyalty and
would likely remain life long customers. This translates into long-term tendency for
stability of sales. UA can achieve this by sponsoring more athletic events in high schools,
colleges, and in any other youth-centered entities.
The challenge with any company expanding globally is the ability to merge their current
culture with the diverse global market. Things that work domestically for UA will need
adjusting in order to fit the culture where they are attempting to do business. Partnering
with businesses that have an existing relationship through licensing agreements, strategic
alliances or acquisitions will be an effective approach. Once the UA brand recognition is
more established and they understand and adjust to the diverse cultures, they will be able
to expand more aggressively.